If the US government closes this week, it includes funds for several highly anticipated cryptocurrency exchange trading funds (ETFs) Sol$206.95 and LTC$104.49 – You can throw it into the Limbo just like you’re near the finish line.
Several asset managers have been in close contact with the Securities and Exchange Commission (SEC) over the past few months, amending the S-1 registration statement. These amended applications are often interpreted as signals that regulators are working towards approval. But a federal shutdown would halt most of that work.
Those familiar with the process believe that some approvals could still land soon next week, assuming the government remains open. In particular, the Spot Solana ETF application is considered to be tight, and some comments from the SEC have already been addressed. The publisher is still expected to submit the final S-1 form.
In addition to momentum, the SEC last week called on the listed exchange to withdraw its 19B-4 filing and resubmit it based on general listing standards. The move suggested that new products were ready to greenlight.
October is packed with deadlines for decisions. Canary Capital’s Litecoin ETF is scheduled to be available by October 2nd. Several other applications face a final deadline of October 10th to 24th.
The closure would destroy much of the federal government, including SEC staff. The skeleton crew will remain to handle “essential” businesses, but it is unclear whether crypto ETFs fall into that category. In past closures, regulatory reviews of financial instruments have often been suspended unless deemed important to market stability.
It is also possible that the SEC has already confirmed many documents in a closed room. This could lead to approvals before the deadline, but the scenario remains speculative even during shutdowns.
In the meantime, I will have to wait to exchange with the issuer, and I will be watching with anxiety as I increase the calendar and Capitol Hill.
ETF races have been hot in 2025, especially with Spot Crypto products – after the surprising approval of SEC’s multiple Spot Bitcoin ETFs in 2024. Many of the same companies behind these products are seeking funds related to alternative assets such as Solana and Litecoin, and are aiming to expand the regulated investment options associated with Crypto.
But for now, politics may have the final say.
Corrected (September 30, 2025, 15:12 UTC): The government is expected to close after Tuesday.
